Resolution problems with new TV and video card

I finally got around to upgrading my video card and tv last week and I noticed that the resolution windows recommends(1920x1080) I cannot use because there is a black border around the edge. 1360x768 works great, but I want to make sure I am getting the most out of my setup. I tried other resolutions and there are 2 others that work but look a little funny. The TV says its max resolution is 1920x1080, the video card says it can go to 2560 x 1600. Here is my setup:

16gb ram
windows 7 64bit ultimate
XFX HD-685X-ZCFC Radeon HD 6850 1GB 256-bit video card
Sceptre 32" Class (31.5" Measured) 3-D Ready 1080p 60Hz 3D LED HDTV E320BV-FHDD
I also have a new pioneer receiver between the computer and tv. I use HDMI cables for both.

I just want to make sure I am getting the best video when I am watching 3d blu ray movies and gaming. Thanks.
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  1. No one has any input on this? Is this normal? I have nothing to compare it to this is my first HD build. Anyone?
  2. The resolution which you should be at is 1080p not 1360x768. That is why windows is recommending it. The graphics card can go to 2500x1600 if you had a monitor or tv which supported that resolution, which you dont. I dont get why you cant go to 1080p since it should becaise it is its native resolution
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